Joint OPEC Ministerial Monitoring Committee anticipates gradual rebalancing of the international oil market

Vienna.- On Friday, the Joint OPEC-Non OPEC Ministerial Monitoring Committee held its fifth meeting in Vienna, Austria, in order to assess the outcome of the first nine months of the Declaration of Cooperation signed December 2016, which aimed at supporting the balance of the international oil market.

The Ministerial Committee, composed of Saudi Arabia, Algeria, Kuwait, Oman, Russia and Venezuela, with the assistance of the OPEC Secretariat, reported that the oil market is making significant progress towards rebalancing.

OPEC Secretary General, Mohammad Barkindo, said that the world economy is recovering, and the stability of the oil market is very important to that effect.

Barkindo commended the efforts made by OPEC to carry out the voluntary production adjustment and thus accelerate the rebalancing of the international oil market.

At the meeting, they also verified an important conformity level in August and an equally high level during the first nine months of 2017.

They also welcomed the participation of Iraq, Libya and Nigeria and their commitment to work closely with other OPEC countries to ensure the success of the Declaration of Cooperation.

The Ministerial Committee requested that all OPEC producing countries promptly achieve 100% compliance, in accordance with the commitment made in December 2016.

The Committee's report noted that oil demand has risen more than expected in 2017 and is expected to increase even more in 2018.

The Committee will continue to monitor all factors in the global hydrocarbons scenario and their impact on the market rebalancing process. All options, including a possible extension of the Declaration of Cooperation beyond the first quarter of 2018, are being considered to ensure that OPEC's efforts result in a rebalancing of the market. They also considered the option to speed up market rebalancing through a higher production adjustment, once 100% conformity is reached by all participating countries.

As we shall recall, voluntary production adjustments, derived from the December 2016 Declaration of Cooperation, amount to nearly 1.8 million barrels per day. 

Finally, it was announced that the sixth meeting of the Joint OPEC-Non OPEC Ministerial Monitoring Committee will be held on November 29 in Vienna, Austria.